Republic of Mining

ArcelorMittal remains committed to Nunavut iron ore mine – by Robert Gibbens (Montreal Gazette – August 12, 2013)

August 13, 2013

http://www.montrealgazette.com/index.html

MONTREAL — ArcelorMittal, the world’s largest steelmaker, said Monday it is fully committed to developing a $4 billion open-pit mine with an annual capacity of 18-20 million tonnes of high-grade iron ore on northern Baffin Island in Nunavut.

Steve Wood, ArcelorMittal’s vice-president, Iron Ore Americas, reaffirmed ArcelorMittal’s future plans for long-term development of the Mary River deposits, after addressing the 23rd World Mining Congress at the Palais des Congrès in Montreal. His comments follow skepticism from some industry sources who questioned whether ArcelorMittal was still committed to such a large capacity, following the collapse in global iron ore prices last year, along with a severe slowdown in steel demand.

ArcelorMittal’s commitment to the Baffin Island development comes at a time when executives like Rio Tinto Alcan CEO Jacynthe Côté are talking about the increased risks facing the mining industry, which is struggling with the vagaries of the economic cycle, rising operating, compliance and social costs, and locations that are more remote and challenging.

The blow to iron ore prices last year led ArcelorMittal to reduce its interest in Baffinland Iron Mines Inc. — owner of the almost inexhaustible Mary River deposits — from 75 per cent to 50 per cent.

NEWS RELEASE: Partnership opens mining sector employment doors for First Nations members

August 13, 2013

This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.

Ontario Mining Association member Noront Resources is the industry partner in a new alliance to provide training for future mining jobs to the people of Matawa First Nations. The Ring of Fire Aboriginal Training Alliance (RoFATA) has received $5.9 million from the federal government’s Skills and Partnership Fund to support that goal.

“Our government’s top priorities are creating jobs, economic growth and long-term prosperity across the country and right here in Northern Ontario,” said Greg Rickford, Minister of State Responsible for the Ring of Fire. “It is important that all Canadians have the necessary skills and training they need to succeed.”

RoFATA was created through a partnership of Noront Resources, Matawa First Nations, Kikenomaga Kikenjigewen Employment and Training Services (KKETS) and Confederation College in Thunder Bay. RoFATA’s key objective is to provide training-to-employment opportunities to support Matawa First Nations people. The Matawa First Nation encompasses nine communities.

Canada’s new science minister wants green mining growth (QMI Agency – August 12th, 2013)

August 13, 2013

http://www.sunnewsnetwork.ca/home.html

OTTAWA – Newly appointed Minister of State for Science and Technology Greg Rickford gave a speech at the World Mining Congress Monday in which he referred to the industry as a “cornerstone of the Canadian economy” and iterated the need for continued growth.

He described how the feds have streamlined the regulatory process, eliminated redundant bureaucratic requirements and made project reviews more market sensitive.

But unlike other, similar speeches given by his Conservative comrades, Rickford’s emphasized environmental stewardship and the need for the mining industry to “(obtain) a social licence to operate.”

If the social licence can be defined as a trust among parties that all are benefiting satisfactorily and feel their priorities and concerns are taken into account, then the renewal of such a thing between the federal government, mining companies and the local communities they affect – namely First Nations – could prove invaluable. Because when it comes to the resource extraction industry in particular, public confidence in “the system” is abysmal, said Rob Roach, vice president of research at the Canada West Foundation.

Europe’s slowdown forces Finland to turn to Russia again – by Jussi Rosendahl (Reuters India – August 12, 2013)

August 13, 2013

http://in.reuters.com/

HELSINKI, Aug 11 (Reuters) – After decades of pursuing trade with western Europe, Finland is becoming dependent on Russia again as that country’s burgeoning middle class and wealthy investors provide opportunities for growth lacking in recession-hit Europe.

While some Finns still view their eastern neighbour and former ruler with suspicion, expectations of only a slow European recovery mean more businesses are likely to embrace closer ties with Russia, signalling a readjustment after two decades of close commercial relations with Europe.

Recent trade data show a shift has already begun. Finnish exports to the rest of the European Union fell 4 percent year-on-year in the first five months of 2013, while those to Russia rose 4 percent.

Judging from second-quarter corporate results, which showed a wide range of companies hit by uncertainty in Europe, Finland may become even more dependent on Russia. Top companies such as retailer Kesko and department store chain Stockmann have cited Russia as their strongest card.

Decade-long Australia mining boom turns to bust (The Associated Press/Las Vegas Sun – August 10, 2013)

August 13, 2013

http://www.lasvegassun.com/

The Australian mining boom built over a decade on Chinese hunger for energy and raw materials is turning into bust for many business owners as China’s cooling growth reverberates through a country accustomed to winning from the rise of an Asian economic giant.

Endowed with vast mineral resources, Australia has been the envy of the Western world for avoiding recession during the global financial crisis while other wealthy countries drowned in debt. But the country now faces a potentially painful transition as it weans itself off a heavy reliance on its two biggest exports, coal and iron ore.

Australia’s dilemma underscores that China’s long run of supercharged growth has given it enough weight in the world economy to create not only winners, but losers too when its own fortunes change.

Trade between Australia and China equaled 7.6 percent of Australia’s $1.5 trillion economy last year, a dramatic threefold increase from a decade earlier, according to an Associated Press analysis of trade data. During that time, mining companies gushed multibillion dollar profits while jobs as mundane as maintenance commanded salaries above $120,000.

Gold producers squeezed by rising costs and sliding prices – by Tim Kiladze (Globe and Mail – August 12, 2013)

August 12, 2013

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Midway through his master’s degree in geology in the 1980s, Brian Christie trekked to the Red Lake gold mine in Northwestern Ontario as part of a research project. About 930 metres deep, more than one and a half times the CN Tower’s height, the remote mining project was a treat for a geology student eager to make his mark in the industry.

At the time, Red Lake was near the top of the list of the world’s most important gold mines in terms of grade and volume. Even today, after decades of production, some areas of the mine produce 57 grams of the gold per tonne – many multiples ahead of the industry average.

Yet the enthusiasm for projects such as that once drew Mr. Christie to research Red Lake has been undercut by a 10-month slide in gold prices and at least $23-billion worth of writedowns by Canadian gold miners over the past year and a half.

Today, Red Lake’s high-grade gold is found as far down as 2,350 metres, about four times the CN Tower’s height, which shows the difficulty gold miners face in trying to boost their stock valuations even if prices for the precious metal rebound.

The (Russian) Arctic is open for business – by Michael Byers (Globe and Mail – August 12, 2013)

August 12, 2013

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

In the 1990 thriller The Hunt for Red October, the rogue captain of a Soviet submarine evades the U.S. and Soviet navies by threading his way through a narrow – but precisely charted – mid-ocean trench.

In real life, the Soviet navy’s charting efforts extended to the heart of the Canadian Arctic. Soviet-era charts, available today, show more depth soundings in the Northwest Passage than Canada’s most recent charts do.

The Cold War is over, but Russia still takes the Arctic seriously. Russian nuclear-powered submarines still sail under the sea ice, where Canada’s diesel-powered submarines cannot venture.

Russia is intent on transforming its Arctic coastline into a commercially viable alternative to the Suez Canal. In 2011, President Vladimir Putin said: “I want to stress the importance of the Northern Sea Route as an international transport artery that will rival traditional trade lanes in service fees, security and quality.”

Opening new mines here [B.C.] is our responsibility to the world – by Daryl Anderson (Vancouver Sun – August 11, 2013)

August 12, 2013

http://www.vancouversun.com/index.html

Environmentally sound projects within Canada save poorly regulated countries from unsafe developments

I grew up in B.C. and have been involved in conservation for my whole working life including conducting inspections and investigations at mine sites for Environment Canada.

Recently I had the opportunity to address the Canadian Environmental Assessment Agency panel hearings into the proposed New Prosperity mine in the Cariboo. You might be surprised to read that I am in favour of the New Prosperity proposal. The reasons I decided to speak in favour are many.

North America consumes a huge percentage of the world’s metal and mineral resources, yet we only extract about a third of those resources within our borders, relying on the rest of the world to satisfy our ever-increasing demands. As an example, the average lifespan of a new smartphone in North America is only 21 months from production to disposal. Even those among us who live a relatively simple lifestyle still utilize and benefit from the infrastructure we have developed to support our health care, education, transportation, communication and many other systems.

Mining industry’s view: Let mining boost state manufacturing – by Hal Quinn (Duluth News Tribune – August 11, 2013)

August 12, 2013

http://www.duluthnewstribune.com/

Hal Quinn is president and CEO of the Washington, D.C.-based National Mining Association (nma.org), which advocates on behalf of America’s mining and minerals resources.

The economy is a top concern for state manufacturers who question whether Minnesota is a competitive state in which to do business, according to findings from Enterprise Minnesota’s fifth-annual “State of Manufacturing” report released in July. Chief among the features state officials should be touting to anxious industry leaders is Minnesota’s vast mineral wealth, which — through sound reform of the federal mine-permitting process — could provide manufacturers with ready, reliable access to the raw materials upon which they rely.

That’s not to say there aren’t already thousands of Minnesotans working to develop some key state resources. Last year, more than $4.5 billion worth of minerals were produced in Minnesota, minerals crucial to high-tech devices, electro-medical equipment, advanced-energy components, defense technologies and infrastructure.

How Enbridge’s Northern Gateway pipeline lost its way – by Nathan Vanderklippe (Globe and Mail – August 10, 2013)

August 12, 2013

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Not far from Kitimat, B.C., on the rugged western shore of Douglas Channel, a plot of land is set to serve as the terminus of Enbridge Inc.’s $6.5-billion Northern Gateway project.

It is from this spot, if the pipeline can be built, that Alberta crude will pour on to supertankers, opening Canada’s energy industry to Pacific markets and providing a key western outlet for surging output from the vast oil sands. It’s an unremarkable tree-covered shoreline, but for Gateway it’s critically important.

And in the fall of 2011, Enbridge nearly lost it, after the Haisla First Nation staged a bold attempt to seize control of the land in question – one of the most striking examples of the rancour that has swelled around the project. Now Northern Gateway is mired in deep uncertainty. Local qualms have blossomed into broad opposition, raising questions about its viability.

Glencore, Vale should join forces, analyst says (CBC News Sudbury – August 9, 2013)

August 12, 2013

http://www.cbc.ca/sudbury/

For an indepth radio report, click here: http://www.cbc.ca/video/news/audioplayer.html?clipid=2400108515

Merging the two mining giants will help reduce redundancies, particulary in Sudbury operations

In a search for cost cutting measures, one mining analyst says a merger between Vale and Glencore should be an option that’s considered. Brazilian mining company Vale released its second quarter results Thursday, which showed an 84 per cent drop in profits.

Base metal prices are also down across the board. Terence Ortslan, managing director with TSO and Associates, an independent mining, metals and fertilizer research firm, said combining operations could help reduce redundancies.

“I think the question is, is it going to be out of necessity, or is it going to be creative in doing things? I think the assets have to be put in a pool to see who can do better and how it’s going to be streamlined in terms of a critical path.”

Glencore recently took over Xstrata — a firm that took over Sudbury’s Falconbridge Ltd. in 2006. Sudbury residents have, for decades, heard and talked about mergers between Falconbridge and Inco Ltd., the company now known as Vale.

Mount Milligan mine on verge of production – by Derrick Penner (Vancouver Sun – August 8, 2013)

August 12, 2013

http://www.vancouversun.com/index.html

Copper-gold project north of Prince George will be first new mine in B.C. in more than a decade

Crews at Thompson Creek Metals’ Mount Milligan project have started crushing rocks and are mere days away from turning on the milling machinery that will grind down the ore and start extracting copper and gold from the first new mine to open in British Columbia in more than a decade.

That development will turn the $1.57-billion construction project into an operating mine with the goal of commencing commercial production of ore sometime in the fall, churning out an estimate 40,369 tonnes (89 million pounds) of copper concentrate and 262,000 ounces of gold per year.

However, the mine’s opening coincides with an uncertain time for the mining sector with falling metals prices and companies such as Teck Resources scaling back capital projects.

“It’s a bit of a mixed environment” for copper miners, according to Patricia Mohr, vice-president of industry and commodity research for Scotia Economics.

Where’s Canada’s national highway? – Thunder Bay Chronicle-Journal Editorial (August 12, 2013)

August 12, 2013

Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario.

Among the many things for which U.S. president Dwight Eisenhower will be remembered is spear-heading one of the best road networks in the world. You can drive a BMW sports sedan as fast as you dare on Germany’s renowned autobahn — and possibly get killed doing it — but the American interstate highway system has few rivals in terms of size, overall road quality and connectivity.

Eisenhower can’t take all the credit. But he’s often the one cited for having the vision, which likely germinated during his Second World War tour in Europe as the Allies’ top commander.

The five-star general obviously realized that an interstate highway system could come in handy in terms of ensuring a country’s defence, although the system inevitably benefited the country’s tourism and commerce more than mounting a war effort.

Canadian snowbirds who make the long drive to Miami Beach in just three days can thank Dwight D. Eisenhower.
It seems rather astonishing, then, that in a country as geographically vast as ours there is no Eisenhower-equivalent cast in the imagination of Canadians when it comes to the post-Second World War development of highways.